Abstract:
The agro-food processing industrial development is one of the current very significant concerns of food security. It has also become an Agro-economic industrialization policy for developing countries like Ethiopia. The objective is to analyze the agro-food processing industry development challenging factors and their policy implications. The authors used both primary and secondary data. Total respondents of 242 were selected. Simple random sampling was applied purposively. It covered three cities from two zones of Oromia National Regional Administrative State of Ethiopia. It also included respondents of agro-processing industry owners, expertise, management members, economists, and statisticians. The simple linear and multivariable regression models were applied to analyze exploratory factors of the development of Agro-food processing industries in Ethiopia. These variables include (a) Power Supply, (b) Good Governance, (c) market accessibility, (d) raw materials, (e) constraints of financial and (f) infrastructure, and (g) technology. Thus, the results of the coefficients for Power was (0.176), Good Governance (0.172), Market Constraints (0.164), Raw materials (0.155), Financial Constraints (0.148), Infrastructure (0.147) had positive coefficients, and they were significantly different from zero at 0<0.05. The coefficients for the independent variable 'technology '(-0.010) was statistically insignificant.
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